Many startups make the mistake of assuming they must take out high-interest loans or make large down payments to acquire equipment. Or, because most financial institutions require a lengthy financial history that new businesses don’t have, many startups feel as if they don’t have the credit history to be approved.
Subsequently, many new business owners don’t know that equipment leasing is an alternative solution that provides them with the equipment needed to operate successfully.
Banks may provide credit cards or small loans, but many times these debts reflect on the owner’s personal credit, which does nothing to establish a business’ credit. With equipment leasing at Providence Capital Funding, Inc., all financing comes through business credit, as is never reported on personal credit.
We’ve worked with several new business owners over the years and have learned that many of them are unaware of the equipment leasing options available. Nor are they aware that leasing options allow them to gain equipment they need without exemplary credit.
It is our intention that this blog shed light on the opportunities available to startups.
When a new business is able to conserve working capital, it’s able to streamline operations without downtime or slowing down growth.
Equipment leasing provides that opportunity.
If you are a startup or a newer business, below are a few equipment leasing tips to help you gain equipment without losing working capital.
Look for story-based approval for equipment leasing.
Many companies base approval on computer-generated scoring systems. This means that only your credit score will be put into the equation. For a startup, this may prove especially troublesome, as new businesses don’t have the financial history required for approval.
However, that isn’t the only problem with this approach. When leasing companies only use software algorithms to approve startups for equipment leasing, new businesses don’t gain the benefits of a customized solution.
Instead, look for an equipment leasing specialist that uses a story-based approval method that concentrates on more than your credit score. They may use such methods as reviewing your business model and plans for growth.
Search for companies that set you up with a dedicated account manager.
In addition to the story-based approval system, it’s important to work with an
equipment leasing specialist that provides you with a dedicated account manager. This professional will work with your business from start to finish and ensure that you receive the equipment leasing solution that makes sense for your unique situation.
Your account manager is an integral part of story-based equipment leasing solutions. This expert will perform an in-depth analysis of not only your credit score, but also your business plans.
Find the simplest equipment leasing solution.
As startups search for options to acquire equipment, it’s important to find the simplest solution. In other words, new businesses can avoid filling out unnecessary paperwork and long approval times.
That’s why Providence Capital Funding, Inc. finalizes paperwork for immediate turnaround. In addition, our equipment leasing experts have made it easy to apply. With only a one-page application, your new business can be approved within 24 hours.